Financing the Purchase of Hotels at 80% LTV with 11 Million Conventional Loan
Holiday Inn Express and Springhill Suites
As mentioned in many other news segments in our website about hotel conventional loans, the banks continue showing concentration on hotel assets in their portfolio, In fact, it is specially becoming increasingly tough to finance hotels with loan sizes that are generally considered large for community banks at 8 million and above as is the case for the financing of this project that included two hotels that were being acquired with a total loan of about 11 million. However, Scientific Capital structured it as two separate loans at 80% loan to the total cost of the acquisition (i.e. acquistion cost is the total of purchase price and 3 million cost of the PIP and the renovations for both hotels). The Holiday Inn Express will be converted to a Formula Blue standard. The terms are attractive as the loans are fully amortized for 20 years with resetting rate every five years.
Our Other Projects With This Client